Bitcoin Encounters Hurdle Near $100,000 amidst Investor Profit-Taking During Political Shift
Bitcoin has halted its upward surge before reaching the significant $100,000 threshold, where it now rests just below following a staggering 40% increase since the U.S. elections on November 5. Current trading data from CoinGecko reveals a value of around $98,243.25 early Monday, showcasing a slight daily upturn but still shy of the coveted milestone.
Analysts and experts are delving into the factors constraining Bitcoin from surpassing the crucial $100,000 mark.
Insights from Market Experts
Experts suggest that investor profit-taking is one key factor influencing Bitcoin’s current stall. Andre Dragosch, Bitwise’s Director of Research for Europe, points out that long-term holders are starting to capitalize on recent gains, contributing to the cryptocurrency’s plateau. Dragosch indicates a possible short-term pause in the rally but considers it as part of a larger bullish trend rather than a significant reversal.
He highlights ongoing supply limitations, further solidified by events like this year’s Bitcoin halving, as factors that should uphold prices well into 2025.
Galaxy Digital’s CEO, Mark Novogratz, supports this view, predicting Bitcoin will eventually reach six figures but noting the necessity of a correction due to prevalent leverage in the market. Novogratz advises focusing on direct Bitcoin investments over holdings in companies like MicroStrategy. He also mentions a significant unidentified seller impacting Bitcoin prices by offloading substantial amounts of the cryptocurrency.
Context and Outlook in the Market
David Morrison, senior market analyst at Trade Nation, underlines the psychological significance of the $100,000 level as a potential barrier to further increases, suggesting a possible downtrend if long-term holders decide to cash out prematurely. Despite this caution, Morrison remains optimistic, hinting at potential momentum building towards a breakthrough.
Deutsche Bank strategist Marion Laboure acknowledges the potential influence of Trump’s supportive stance on crypto but notes the distant nature of substantial federal crypto legislation. Regulatory hurdles, including the need for congressional approval, could challenge Trump’s aim of positioning the U.S. as a global crypto hub. Laboure implies that while regulations pose obstacles, they could ultimately benefit the industry.
In Summary
The current struggle of Bitcoin approaching $100,000 unfolds as a combination of long-term investor profit-taking, market leverage dynamics, and external political elements. Analysts scrutinize these complexities as the cryptocurrency landscape remains ripe for significant shifts. Investors should remain attuned to evolving market trends and regulatory developments shaping Bitcoin’s future trajectory.
